EXHIBIT 10.99.6
AMENDMENT TO CONTRACT BUY-OUT AGREEMENT
This Amendment to Contract Buy-Out Agreement (the "Amendment"), dated as of
January 6, 1999 is made and entered into by and between Youth Services
International, Inc., a Maryland corporation ("YSI") and Golden Eagle Education &
Training, Inc. (formerly, "International Youth Institute, Inc."), a Maryland
corporation ("Golden Eagle"). This Amendment shall be deemed effective as of
December 21, 1998.
Explanatory Statement
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A. On December 21, 1998, YSI and golden Eagle entered into a Contract Buy-
Out Agreement (the "Agreement").
B. all terms not otherwise defined herein shall have the meanings ascribed
to them in the Agreement.
C. YSI and Golden Eagle desire to amend the Agreement as set forth herein.
Agreement
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Now, therefore, for good and valuable consideration, the explanatory
statement set forth above, which is incorporated into the body of this
Amendment, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:
1. Section 1 of the Agreement shall be deleted in its entirety and
replaced with the following:
"Termination of TSA. YSI and Golden Eagle terminate and rescind the
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TSA in every respect effective as of December 31, 1998 (the
"Termination Date")."
2. Section 2 of the Agreement shall be deleted in its entirety and
replaced with the following:
"Buy-Out Amount. As full payment to Golden Eagle for the release and
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discharge of the parties' respective obligations under the TSA, YSI
agrees to pay Golden Eagle the total sum of $1,150,000.00 as follows:
(i) YSI shall initiate a wire transfer of the sum of $775,000.00 to
Golden Eagle no later than 4:00 p.m. January 6, 1999; the $775,000
must be received in Golden Eagle's account no later than 4:00 p.m. on
January 7, 1999; and (ii) YSI shall pay to Golden Eagle by bank
treasurer's check or wire transfer the sum of $375,000.00 with such
funds being received by Golden Eagle on the earlier of (x) March 5,
1999 and (y) the first business day following the announcement by the
Maryland Department of Juvenile Justice of the selection of the
preferred bidder of the Xxxxxxx X. Xxxxxx School Contract RFP No.
99JJ010.
3. Section 3 of the Agreement shall be deleted in its entirety.
4. Section 7 of the Agreement shall be deleted in its entirety and
replaced with the following:
"Compliance by Golden Eagle.
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A. Golden Eagle hereby agrees that it and its officers,
individually or representing Golden Eagle in any capacity will not (a)
(i) assist, advise or consult with, (ii) team with, or (iii) lend its
name to or otherwise be a part of a bid proposal (as subcontractor,
consultant, reference or otherwise) of, any person or party in
connection with any proposal for any contract relating to current
operations of YSI or the renewal of any YSI contract, or (b) otherwise
violate or breach the noncompete provisions of the Assignment and
hereby represents and warrants that neither it nor any of its officers
has done any of the foregoing.
B. Golden Eagle agrees that any material violation by it and any
of its officers of the provisions of this Section 7 would enable YSI
to reclaim the amount paid by YSI to Golden Eagle under Section 2
hereof, in addition to any other legal or equitable relief to which
YSI may be entitled, provided, however, that the amount that YSI may
reclaim under the provisions of this paragraph shall be reduced by the
sum of two hundred thousand dollars ($200,000) on each anniversary of
the date of this agreement until such amount shall be reduced to zero,
it being understood that such reduction does not limit the amount of
damages or other relief to which YSI may be entitled."
5. Purchase of Equipment. On or before January 8, 1999, YSI shall pay to
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Golden Eagle the sum of $4,852.42 in consideration of the equipment set forth on
Schedule A attached hereto, all of which has previously been transferred by
Golden Eagle to YSI.
6. Representations and Warranties of YSI and Golden Eagle. YSI and Golden
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Eagle are corporations duly organized, validly existing and in good standing
under the laws of the state of Maryland and both have full corporate power to
enter into and perform their obligations under this Amendment and the Agreement.
The execution, delivery and performance of this Amendment and the Agreement are
within the corporate power of YSI and Golden Eagle and have been duly authorized
by all necessary corporate action by YSI and Golden Eagle. This Amendment and
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the Agreement, as amended, are enforceable against YSI and Golden Eagle in
accordance with their respective terms.
7. Effect of this Amendment. Except as specifically set forth herein, the
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provisions of the Agreement shall remain in full force and effect as if this
Amendment had not been made. The Agreement, as hereby amended, is ratified and
confirmed.
8. Counterparts. This Amendment may be executed in several counterparts,
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each of which shall be deemed an original, but all of which shall constitute one
and the same document.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
signed as of the day and year first above written.
WITNESS: YOUTH SERVICES INTERNATIONAL, INC.
/s/ Xxxx X. Xxxxxxx By: /s/ Xxxx X. Xxxxxxx
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Xxxx X. Xxxxxxx, Senior Vice President
and General Counsel
GOLDEN EAGLE EDUCATION &
TRAINING, INC.
/s/ Xxxxxxx X. Xxxxxx By: /s/ Xx. Xxxxx X. Xxxxx
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Xx. Xxxxx Xxxxx, Chairman and Chief
Executive Officer
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GOLDEN EAGLE EDUCATION & TRAINING, INC. EQUIPMENT
(As used in conjunction with YSI TSA)
12/31/98 CONTRACT
DATE OF ORIGINAL BOOK BUYOUT
LOCATION DESCRIPTION PURCHASE COST VALUE PRICE
-------- ----------- -------- ---- ----- -----
Capital Equipment
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Camp Xxxxxxxxxx Xxxxxxx X0-000 Desktop Computer 15-May-96 $ 2,409.13 $ 267.69 $ 267.69
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Clarinda Academy HP 600C Color Inkjet Printer 10-Apr-96 $ 427.41 $ 199.57 $ 199.57
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Xxxxxxxx Xxxxxxx Xxxxxxx X0-000 Desktop Computer 15-May-96 $ 2,409.13 $ 267.69 $ 267.69
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Xxxxxx School Gateway P5-100 Desktop Computer 15-May-96 $ 2,174.28 $ 267.69 $ 267.69
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Xxx Xxxxxxxx'x Home Office Toshiba P5-75 Notebook Computer 04-Jun-96 $ 2,174.28 $1,087.08 $1,087.08
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Xxxx Xxxxx'x Home Office HP 5P Laser Printer 22-Apr-96 $ 1,002.15 $ 467.75 $ 467.75
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Xxxx Xxxxx'x Home Office Gateway P5-100 Desktop Computer 15-May-96 $ 2,409.13 $ 267.69 $ 267.69
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Xxxx Xxxxx'x Home Office Sharp Fax Machine 27-Feb-97 $ 344.84 $ 218.34 $ 218.34
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Total - Capital Equipment $13,585.20 $3,043.50 $3,043.50
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Expense Items
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Camp Washington 2 Drawer File Cabinet 10-Oct-96 $ 69.98 $ 34.99
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Camp Washington 2 Drawer File Cabinet 20-Nov-96 $ 71.66 $ 35.83
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Camp Washington O/H Projector 03-Feb-97 $ 199.99 $ 99.99
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Camp Washington 4 Drawer Putty File Cabinet 08-Sep-97 $ 229.33 $ 114.66
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Chanute Transition Center Filing Cabinet 06-Nov-98 $ 89.00 $ 44.50
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Clarinda Academy Iomega Zip Drive (External) 02-Oct-98 $ 146.99 $ 73.50
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Cypress Creek Academy Black File Cabinet 20-Aug-97 $ 262.35 $ 131.18
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Cypress Creek Academy Filing Cabinet 26-Jun-98 $ 264.99 $ 132.49
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Everglades Academy 4 Drawer (25") File Cabinet 25-Aug-97 $ 214.89 $ 107.44
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Xxxxxx School 4 Drawer Putty Lateral File 21-Feb-97 $ 230.42 $ 115.21
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Xxxxxx School Xxxx Task Chair 27-Mar-97 $ 223.11 $ 111.56
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Xxxxxx School 4 Drawer Xxxx Lateral File 16-Jun-97 $ 230.42 $ 115.21
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Xxxxxx School HP Deskjet 500 Printer 01-May-98 $ 75.00 $ 37.50
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Hillsborough Academy Black Storage Cabinet 10-Sep-97 $ 264.83 $ 132.42
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Keweenaw Academy O/H Projector 09-Jan-97 $ 199.99 $ 99.99
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Xxxx Xxxxx'x Home Office Iomega Zip Drive (External) 16-Aug-98 $ 125.39 $ 62.70
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Xxxx Xxxxx'x Home Office Fax/Modem Card 26-Aug-98 $ 135.80 $ 67.90
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Springfield Academy Flip Chart Easel 03-Dec-96 $ 144.99 $ 72.50
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Springfield Academy O/H Projector 03-Dec-96 $ 199.99 $ 99.99
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Springfield Academy 2 Drawer File Cabinet 09-Dec-96 $ 69.98 $ 34.99
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Springfield Academy 2 Drawer File Cabinet 09-Dec-96 $ 69.98 $ 34.99
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Tarklo Academy Literature Sorter 08-Oct-97 $ 98.76 $ 49.38
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Total - Expense Items $ 3,617.84 $1,808.92
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Total - All Equipment $17,203.04 $4,852.42
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Note: Capital equipment (computers, printers, etc.) sold at book value
as of 12/31/98
Expense items (file cabinets, o/h projectors, etc.) sold at 50%
of original cost
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